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Among the challenges cited by Jim are:
- It's a small water district by number of customers, but with a complex infrastructure that would be required for a district with many more customers with less mountainous terrain.
- There are long-term infrastructure repair in progress requiring about $75 million.
- Paying for long-term repairs required a rate increase in 2017 to qualify for a $10 million loan.
- CZU fire damage recovery will require an additional $20 million. FEMA can help with 75%.
- The district has introduced a rate stabilization program to increase rates temporarily to recoup recent revenue losses
- Several smaller districts are looking to merge: Bracken Brae, Forest Springs and Big Basin. They sustained major damage in CZU fire.
- The district is instituting a Low Income Rate Assistance Program which will include tiered rates.
- A major challenge is the Santa Margarita Groundwater agency. Stakeholders Scotts Valley, Santa Cruz County & City, SLVWD and well owners must develop plans to protect the aquafer we all take water from.